BBC provisionally approves on-demand TV

 

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By Reuters

Posted on 31 Jan 2007 at 15:30

The BBC Trust has approved the idea of a Web-based on-demand TV service.

The Trust, which oversees Britain's publicly-funded broadcaster, provisionally gave the green light for the service after making some changes to meet concerns from the media regulator Ofcom that it would impact commercial rivals.

The on-demand iPlayer service will allow viewers to catch up with programmes from the previous seven days and store them on a computer for 30 days.

Certain series of programmes could also be stored as a whole and viewed at a later date while programmes will also be offered live via simulcast on the Internet.

Several broadcasters including ITV, Channel 4 and BSkyB have launched or are in the process of launching on-demand services as viewers turn from the traditional linear access to programming to on-demand access.

In planning for the service, the BBC Trust conducted a Public Value Test to see if it fitted with the corporation's public service remit as the BBC is funded by the licence fee paid by all UK television-owning households.

Media regulator Ofcom, which conducted a Market Impact Assessment, also warned that the BBC's entry and power in a nascent market such as on-demand services could harm the competition 'necessary to ensure quality content for the long-term'.

It also said the series stacking could affect sales of DVDs.

The BBC made several changes from the original proposal, including reducing the period viewers can store the programmes from the original suggestion of 13 weeks to 30 days.

Under the latest plan, series stacking will only be allowed for certain series which have a 'distinct run', such as the drama 'Bleak House' while ongoing soaps and programmes such as 'EastEnders' or 'Top Gear' would not be allowed.

'The BBC Trust has a duty to ensure the public receives value in return for paying the licence fee,' Diane Coyle, a trustee said, speaking on behalf of the Trust.

'Our view is that the BBC's new on-demand services are likely to deliver significant public value, and should be allowed to proceed, but subject to certain conditions in order to reduce the potential negative market impact.'

The new proposals from the BBC will now be put out to a public consultation which will close on 28 March. The Trust expects to announce its final decision before 2 May, 2007.